GBPUSD: Recovery Risk Turns To The 1.4768 Level

By IBTimes Staff Reporter | June 11 2010 9:35 AM

GBPUSD: Although price hesitation has set in after its Thursday's corrective recovery rally, we still look for an eventual retarget of the 1.4768 level, its Jun 02'10 high. While GBP trades and holds above the 1.4257/26 zone, its May 25'10/2010 lows, our corrective recovery view remains valid. This suggests that an ultimate recapture of the 1.4768 level is likely to trigger the resumption of its recovery towards the 1.4915 level, its May 13'10 low. On a sustained break above there, its May 10'10 at 1.5052 will be targeted.

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On the downside, to reverse its corrective recovery/consolidation view, the pair will have to convincingly violatethe 1.4257/26 zone to resume its broader weakness with the next downside objective located at its March'2009 low at 1.4112 and then its big psycho level at 1.4000. All in all, with its corrective recovery still intact, we look for the pair to eventually retarget the 1.4768 level.